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 With the economy in full “end times” mode and the government handing out billions of dollars, the Philadelphia Business Journal writes that Wachovia might merge with another bank finally. This would be a boon to both the bank and Philadelphia’s noted giant stadium sign industry, as the Wachovia (formerly Corestates and First Union) Center would probably end up with its fourth different name.
Wells Fargo has long been seen as a merger partner given the San Francisco bank’s dominance in the West. But Morgan Stanley and Goldman Sachs might find themselves seeking to combine with a commercial bank, especially following this week’s buyout of Merrill Lynch by Bank of America.
Steel said the bank has a big advantage in working through its problems because it has a direct relationship with mortgage borrowers that allows the bank to work out problem loans with borrowers.
“We have lots of flexibility to figure out how to do this,” Steel said. “If we just owned securities, we would have two choices: hold or sell. We have lots of choices.”
Of Wachovia’s $500 billion in loans, only $10 billion are “problematic,” Steel said. “We have a lot of very good loans that are doing well, and we’re going to focus like crazy” on those problem loans.
Goldman Sachs Center? Morgan Stanley Arena? Ehh, whatever. I’ll keep calling it the F.U. Center — and, for that matter, continue saying that I’m going to see the Phillies at “the Vet.”
Wachovia merger speculation heats up [Philadelphia Business Journal]
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